Foreclosure - can they take our new home?

[toomanybills]

What is the name of your state? Oklahoma

We bought a new, larger home 2 years ago before we sold our old house. We intended to sell the old one after some updates were made, it then was vanadalized and we had more repairs. After it was done housing prices were already falling, the neighborhood had seriously taken a nosedive & we owed too much. On top of that our loan went to adjustable rate (we had planned to have the house sold BEFORE that happened) & of course our interest rate has gone up every time it is possible - even when we were making our payments on time.

Anyway, the payments skyrocketed, we can't make the payment no top of our payments for our current home and we can sell the house. So, if it forecloses can they force us to sell our current home or in anyway touch it due to the forclosure on the old home??
I'm sure we will be liable for some kind of fee's or penalties or something on the forclosure but my only concern is the impact it will have on our current home and mortgage??

Thank you!

[seniorjudge]

Some states allow deficiency judgments, meaning if the loan was $100K and all they got at the sale was $80K they could come after you for the balance.

Two good suggestions: Talk to your lender and hire a lawyer.

[VeronicaLodge]

are your mortgages with the same bank or company?

i feel for you, i was lucky, i bought a house a year and a half a go and hadnt yet sold my old house in an area that was also fastly declining. there were 9 other houses of MY STYLE in the same subdivision for sale too. we fixed it up and cleaned it up and put it on the market. i was willing to sell it for just enough to break even on the sale, it sold in 3 months, which seemed like forever and i was so worried and scared. but it sold and we actually made a little. now i hear stories like this and im just so grateful. im really sorry you are going through this.

[moburkes]

Since your state allows judicial and non-judicial foreclosures, the answer is in your mortgage documents. They will state the remedy for default.